Russian oil major Lukoil has signed a memorandum of understanding with Azerbaijan’s state oil company Socar on joint exploration at promising offshore blocks in the Azerbaijani sector of the Caspian Sea, TASS reported on Wednesday.
“On January 22, a memorandum of understanding was signed by Socar and Lukoil on the exploration block covering the promising structure of Nakhchivan in the Azerbaijani sector of the Caspian Sea, as well as promising structures of Pre-Caspian-Guba and Goshadash in shallow waters of the sea,” a press statement from Lukoil reads.
Projected reserves are 110 million tons of oil and 85 billion cubic meters of gas.
The document was inked on the sidelines of the World Economic Forum in Davos by Socar president Rovnag Abdullayev and Lukoil Chief Executive Officer Vagit Alekperov.
The agreement on joint exploration of the oil and gas potential of the Goshadash block was signed on September 1, 2018 in Sochi as part of Aliyev’s visit to Russia.
SOCAR and Lukoil have confirmed their intention to cooperate on a number of offshore structures in the Azerbaijani sector of the Caspian Sea.
“The head of SOCAR Rovnag Abdullayev and the President of LUKoil Vagit Alekperov on Wednesday in Davos signed a memorandum of understanding on cooperation on the exploration block, which includes Nakhchivan prospective structure and the shallow structures of Goshadash and the Caspian-Guba,” according to SOCAR’s official website.
In 1997, SOCAR and the American ExxonMobil signed a Professional Services Agreement contract for the Nakhchivan prospective structure.